EV Charging Sector in India

Market Size

The Indian Electric Vehicle Market was valued at USD 5 billion in 2020, and it is expected to
reach USD 47 billion by 2026, registering a CAGR of above 44% during the forecast period
(2021-2026). The Indian Electric Vehicle Market has been impacted by the outbreak of the
COVID-19 pandemic due to supply chain disruptions and the halt of manufacturing units due to
continuous lockdowns and travel restrictions across the country. However, the electric vehicle
(EV) market is still in its nascent stage in India. It is expected to grow at a much faster rate
during the forecast period due to various government initiatives and policies. E-commerce
companies (Amazon, for example) are launching initiatives to use e-Mobility for last-mile
deliveries to reduce carbon footprint. India is experimenting with e-Mobility for public transport,
and the country has deployed electric intercity buses across some major cities.

The Automobile sector contributes 49% to India’s manufacturing GDP and 7.1% to India’s
overall GDP. The 2nd AMP (Automotive Mission Plan) released by the government outlines the
plan to elevate the Automotive Industry to world-class levels. As part of the Paris agreement in
2015, India committed to reduce the emission intensity of its gross domestic product (GHG
emissions per unit GDP) by 33- 35% over 2005 levels by 2030. In order to meet its global
commitment and mitigate the adverse impact of automobiles (ballooning oil import expenses
and increasing air pollution), the Government is keen to shift the narrative towards electric
vehicles. The electric vehicle market in India is expected to be valued at $2bn by 2023.

The number of electric vehicles operating in the medium and heavy passenger vehicle category
increased from 124 in 2018 to 1,356 as of 6 August 2021. 3.87 lakh Electric Vehicles and 6,740
Electric Buses were sold in India under FAME India Scheme as of August 2021. The
two-wheeler segment is expected to be valued at $2 bn by 2025 with a penetration of 16% in
2025. The three-wheeler segment is expected to be valued at $0.6 bn by 2025 with a
penetration of 20% in 2025. The Four-wheeler segment is expected to be valued at $1.5 bn by
2025 and penetration of 5% by 2025. The E-rickshaws category stands at 0.7 million units a
year and has grown rapidly in the last 5 years. It is primarily based on Lead Acid batteries and
close to 50% of this market is completely unorganized and unregulated. By 2024-25, as much
as 40 % of the e-rickshaw market is expected to be Li-ion based.

A vehicle leasing model is ideal for higher acceptance for commercial or taxi use for both
passenger vehicles. As the battery corresponds to half the engine's cost, the battery leasing
model is highly suited to commercial vehicles and buses, as the high initial cost is minimised
and made commercially feasible. The small business car can benefit from the battery-swapping
model as the trade concept does not clash with architecture, style, or build quality. The vehicle
sharing model can be used for two-wheelers.
Government Initiatives

1. Charging stations do not need a separate licence under the Electricity Act of
2003(because charging EVs is classified as a service).
2. An outlay of INR 10,000 cr has been made for FAME-II over 3 years till 2022.
3. INR 8597 cr has been set aside for incentives and INR 1000 cr has been kept for
charging infrastructure.
4. Production Linked Incentive Scheme on Advanced Chemistry Cell (ACC) (Incentives
worth INR 18,100 Crore) has been set.

Through this Scheme, the Government of India intends to optimally incentivize potential
investors, both domestic and overseas, to set- up Giga-scale ACC manufacturing facilities with
an emphasis on maximum value addition and quality output and achieving pre-committed
capacity level within a predefined time period.

The NEMMP scheme has also provided the basic groundwork for the adoption of hybrid and
electric vehicles in India. Moreover, the Faster Adoption and Manufacturing of Hybrid & Electric
Vehicles (FAME) India Scheme that supports the development of hybrid & electric vehicles,
demand creation, pilot projects, and charging infrastructure, is expected to be a driving factor for
increasing the demand for electric vehicle charging equipment over the next few years.

In addition, state governments are also playing an active role in the deployment of policies
encouraging the usage of EVs. For instance, Kerala aims to put one million EV units on the
road by 2022 and 6,000 e-buses in public transport by 2025, Telangana aims to have EV sales
targets for 2025 to achieve 80% 2-wheelers and 3-wheelers (motorcycles, scooters,
auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and Uber), 40%
buses, 30% private cars, and 15% electrification of all vehicles.

Companies

Top publicly traded vehicle and battery management companies in India include Mahindra
Electric, Hyundai, Tata Motors, Ashok Leyland, Hindalco Industries, Graphite India, Hindustan
Copper, Tata Chemicals, Exide Industries, Maruti Suzuki, Hero Motocorp, Amararaja Batteries,
Greaves Cotton, Himadri Speciality Chemical, Vedanta, JBM Auto etc.

There are 124 registered startups for now in the EV ecosystem headquartered in India, among
them 43 battery startups. The biggest among them is Ola Electric and Ather Energy. There are
exciting startups working in the battery industry domain too, like Log9 Materials and Virya
Batteries.
Charging Infrastructure

There are three types of electric chargers available for EVs depending on the level of charging
that they provide:

Level 1 Charging (Slow Charging)

It is the basic charging equipment with slow speed. It uses 120V through an Alternating Current
(AC) plug and can be used on home circuits. It takes around 8 to 12 hours to charge a battery
through this equipment. It is mainly used in households for overnight charging of the EV.

Level 2 Charging (Standard Charging)

It provides an average charging time of 4 to 6 hours through a 240V AC plug. It is compatible
with all EVs including plug-in electric hybrid vehicles. These stations are mostly installed in
public parking spaces, commercial and residential buildings.

Level 3 Charging (Rapid Charging)

It can charge a battery up to 80% in 20-30 minutes using 480V Direct Current (DC) plug.
However, it is not compatible with all the EVs. They can be installed only in public charging
stations.

The Government of India has made it compulsory to set up an EV charging station every 3 km
in the cities, 25 km on the highway, and 100 km on highways for heavy-duty vehicles.

Infrastructural Requirements for Setting EV Charging Station:

1. Installation of a transformer, substation equipment, and safety equipment.

2. 33/11 KV cables and associated equipment for line and meters.
3. Civil works and installations.
4. Land space for charging vehicles and entry or exit of vehicles.
5. Installation of all the charger models approved by local and international standards.

Some of the companies that are providing services for EV charging stations are:

Tata Power – Mumbai

Charge + Zone – Vadodara
Exicom Power System – Gurgaon
Charge My Gaddi – Delhi
Volttie – Noida
EVQ Point – Bengaluru
PlugNGo – Noida
Dyna Hi-tech Power Systems – Navi Mumbai
Charzer - Bengaluru
ABB Ltd - Mumbai
National Thermal Power Corporation (NTPC) - Delhi
Mahindra Reva Electric Vehicles Pvt. Ltd - Bengaluru
ACME Group - Mumbai
Siemens AG - Mumbai

Constraints

Some of the major challenges for the electric vehicles industry in India are:

1. The high initial cost of owning

2. Lack of choice of EVs
3. Lack of Awareness
4. Uneven electricity distribution
5. Charging time
6. Lack of EV charging infrastructure
7. Service centre and repair options
8. Range Anxiety in consumers
9. Lack of Lithium reserves for battery manufacture
10. Cost of battery
11. Lack of indigenous battery tech
12. Lack of product options for customers.
13. Lack of sufficient raw materials

References

1. Cost Estimates of Setting Up an EV Public Charging Station in India? (lendingkart.com)

2. Invest in Indian Electric Mobility Industry | FDI & Companies (investindia.gov.in)
3. Invest in Indian Electric Mobility Industry | FDI & Companies (investindia.gov.in)
4. Charging Stations for Electric Vehicles in India: All you need to know (okcredit.in)
5. India Electric Vehicle Charging Equipment Market | 2021 - 26 | Industry Share, Size,
Growth - Mordor Intelligence
6. India Electric Vehicle (EV) Market | 2021 - 26 | Industry Share, Size, Growth - Mordor Intelligence
7. Challenges for electric vehicles in India: EV problems in India - ecogears
8. Electric Vehicle in India: Challenges & Opportunities - (e-vehicleinfo.com)
9. Top EV Stocks in India 2021 - Best Electric Vehicle Stocks to Buy! (tradebrains.in)
10. Advanced Search | Companies | Crunchbase
11. Advanced Search | Companies | Crunchbase